TJX settles data breach lawsuits

TJX, owner of the TK Maxx brand, has agreed to settle a series of class-action lawsuits stemming from a huge data breach in 2005.

Victims of the credit card heist will be divided into two camps. Customers who had credit card and personal identification information stolen and used fraudulently will be entitled to three years of free credit monitoring and identity theft insurance.

This will be shortened to two years for customers who had already accepted an earlier insurance offering. TJX will also refund any costs for replacing ID documents as a result of the breach.

The company said that the identification data was collected when the company accepted merchandise returns without receipts.

The second camp of customers who had only credit card information stolen in the 2005 breach will be offered vouchers for in-store use.

TJX said that customers will not be able to file claims until the settlement is formally approved by the court.

The company estimates that the settlements will bring its total losses from the data breach to roughly $128m.

The problems occurred over an 18-month period covering 2005 and 2006 at the company's database in Massachusetts.

TJX estimates that information from 45 million customers worldwide had been compromised, although only around 11 million had valid credit card data stolen.

Some of the stolen data was used in an $8m Florida shopping spree in March 2007 that led to arrests or warrants being issued for 10 people.

See also:

Fidelity admits theft of data on 2.3m customers

Bank and credit card numbers lifted from payment monitoring firm  04 Jul 2007

Lax USB stick security causing havoc

Most firms have lost valuable data loaded on portable memory devices  30 May 2007

TK Maxx security blunder will cost $8.3bn

45 million customers' cards at an estimated $186 each  17 May 2007

Security technology 'at a watershed'

IBM warns that education is everyone's responsibility  25 Apr 2007

TK Maxx data theft danger 'over hyped'

Card details without the security number are of little use on the internet or phone, argues expert  03 Apr 2007

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